UpFront » January 2021

Founder and President Amy Lynch appeared on CNBC’s “Squawk on the Street” to discuss the recent market volatility resulting from Reddit chat room influenced trading of GameStop, among other stocks. Ms. Lynch explained the relevant regulatory roles of the SEC, FINRA and CFTC, and potential responses to the events, which have created a short squeeze for certain hedge funds holding short positions of the targeted stocks. View the interview, CNBC’s Squawk on the Street, …

The requirement for a “valuation designee” as part of the SEC’s new valuation rule should help ensure a formal valuation process exists at firms. FrontLine’s Founder and President, Amy Lynch, comments that while most large firms already have a valuation committee, the new rule takes it a step further, pushing for certain processes and adherence to policies, while requiring fund boards to be involved. Ms. Lynch also recommends that the valuation designee consult with the…

SEC Chair nominee Gary Gensler could add immediacy to new regulatory initiatives focused on rules to protect investors and expand oversight of markets. Compared to the prior tenure of Chairman Clayton, expect a pivot on policy with Democratic control of the SEC countering the deregulatory approach of the last administration. This may include re-evaluating Regulation Best Interest (Reg BI) and proposing rules requiring disclosures on climate risks and other information tied to ESG policies. On…

An ETF backed by digital assets like bitcoin may be on the horizon, but it’s likely regulators will first want to see a market infrastructure for cryptocurrencies that provides greater price stability. FrontLine’s Founder and President, Amy Lynch, explains that if bitcoins and other cryptos are deemed a security, it would need to be pegged to something priced in a repeatable, standardized way to deter manipulation. Ms Lynch also states that SEC chair nominee Gary…

It’s likely that the initial regulatory agenda under now President Biden would include issues that are important to both him and his nominees for regulatory posts, and could be helped along by Democratic control of Congress. According to Amy Lynch, FrontLine’s Founder and President, this could include rule proposals on ESG disclosures, and cases involving cryptocurrencies. Also, expect a SEC under Biden to ramp up enforcement activity of Wall Street firms, whereby existing rules will…